Syllabus of Economics class 12 CBSE Board (2022-23)
Theory – 80 Marks
Projects – 20 Marks
|PART – A||(Introductory Macroeconomics)|
|UNIT 1||National Income and Related Aggregates||10||30|
|UNIT 2||Money and Banking||06||15|
|UNIT 3||Determination of Income and Employment||12||30|
|UNIT 4||Government Budget and the Economy||06||17|
|UNIT 5||Balance of Payments||06||18|
|PART – B||(Indian Economic Development)|
|UNIT 6||Development Experience (1947-90) and |
Economic Reforms since 1991
|UNIT 7||Current Challenges facing the Indian Economy||20||50|
|UNIT 8||Development Experience of India – |
A Comparison with neighbors
|Theory Paper (40+40 = 80 Marks)|
|Part – C||Project Work||20||20|
Part A: Introductory Macroeconomics
Unit 1: National Income and Related Aggregates
What is Macroeconomics?
Basic concepts in macroeconomics:
consumption goods, capital goods, final goods, intermediate goods; stocks and flows; gross investment and depreciation.
Circular flow of income (two-sector model);
Methods of calculating National Income – Value Added or Product method, Expenditure method, Income method.
Aggregates related to National Income:
Gross National Product (GNP), Net National Product (NNP), Gross Domestic Product
(GDP) and Net Domestic Product (NDP) – at market price, at factor cost; Real and Nominal GDP.
GDP and Welfare.
Unit 2: Money and Banking
Money – meaning and functions, supply of money – Currency held by the public and net demand deposits held by commercial banks.
Money creation by the commercial banking system.
The central bank and its functions (example of the Reserve Bank of India): Bank of issue, Govt. Bank, Banker’s Bank, Control of Credit through Bank Rate, CRR, SLR, Repo Rate and Reverse Repo Rate, Open Market Operations, Margin requirement.
Unit 3: Determination of Income and Employment
Aggregate demand and its components.
Propensity to consume and propensity to save (average and marginal).
Short-run equilibrium output; investment multiplier and its mechanism.
Meaning full employment and involuntary unemployment.
Problems of excess demand and deficient demand; measures to correct them –
changes in government spending, taxes and money supply.
Unit 4: Government Budget and the Economy
Government budget – meaning, objectives, and components.
Classification of receipts – revenue receipts and capital receipts;
Classification of expenditure – revenue expenditure and capital expenditure.
Balanced, Surplus, and Deficit Budget – measures of government deficit.
Unit 5: Balance of Payments
Balance of payments account – meaning and components;
Balance of payments – Surplus and Deficit
Foreign exchange rate – meaning of fixed and flexible rates and managed to float.
Determination of exchange rate in a free market, Merits, and demerits of the flexible and
fixed exchange rate.
Managed Floating exchange rate system.
Part B: Indian Economic Development
Unit 6: Development Experience (1947-90) and Economic Reforms since 1991
A brief introduction of the state of the Indian economy on the eve of independence.
Indian economic system and common goals of Five Year Plans.
Main features, problems, and policies of agriculture (institutional aspects and new
agricultural strategy), industry (IPR 1956; SSI – role & importance), and foreign trade.
Economic Reforms since 1991:
Features and appraisals of liberalisation, globalisation and privatisation (LPG policy);
Concepts of demonetization and GST
Unit 7: Current challenges facing the Indian Economy
Human Capital Formation: How people become resources; Role of human capital in
economic development; Growth of Education Sector in India
Rural development: Key issues – credit and marketing – role of cooperatives;
agricultural diversification; alternative farming – organic farming
Employment: Growth and changes in workforce participation rate in formal and
informal sectors; problems and policies
Sustainable Economic Development: Meaning, Effects of Economic Development on
Resources and Environment, including global warming.
Unit 8: Development Experience of India
A comparison with neighbors
India and Pakistan
India and China
Issues: economic growth, population, sectoral development, and other Human
Part C: Project in Economics
- Statistics for Economics, NCERT
- Indian Economic Development, NCERT
- Introductory Microeconomics, NCERT
- Macroeconomics, NCERT
- Supplementary Reading Material in Economics, CBSE
Note: The above publications are also available in Hindi Medium.